AERIAL FIRE FIGHTING AND PESTICIDE APPLICATION AND OTHER

AERIAL FIRE FIGHTING AND PESTICIDE APPLICATION AND OTHER SERVICES REQUEST FOR PROPOSAL 11 December 2020

AGENDA 01 → Introduction 02 → Available Parcels 03 → Timeline 04 → Mandatory Requirements 05 → Important Points 06 → Fire Parcels 07 → Pesticide Application parcels 08 → Addendum 1 09 → Assessment Criteria 10 → Thankyou Aerial Services Presentation► 2

INTRODUCTION • FCNSW manages approximately 260, 000 ha of plantations in Regional NSW. These plantations are managed (among others), from Regional Offices in Grafton, Walcha, Bathurst, Tumut and Bombala. • Aerial fire fighting is a critically important part of our business to ensure we keep our trees safe for a period of 30 years. • Pesticide application is essential for the tree's health and the forests productivity • We need the very best in the business to provide both these critical services with enthusiasm, precision and determination. Aerial Services Presentation► 3

AVAILABLE PARCELS Management Areas Services Pesticide Fire Tumut/Bombala Bathurst Grafton/Walcha Works Parcel S 1 Works Parcel B 1 Works Parcel N 1 Approximately 16 600 ha of spraying Approximately 6050 ha of spraying 10 000 ha of 100 L work 6 600 ha of 50 -60 L work 3 050 ha of 100 L work 3 000 ha of 50 -60 L work Approximately 6600 ha of spraying 3 100 ha of 100 L work 2050 ha of 50 -60 L work 1750 ha of 5 L work 3+1+1 Year term Works Parcel S 2 Approximately 50 days of stand-up. Approximately 100 days of standby. Approximately 100 hours of active flight Works Parcel B 2 Approximately 50 days of stand-up. Approximately 100 Days of Standby. Approximately 100 hours of active flight Expectation to support Grafton/Walcha and Bathurst as needed. Expectation to support Tumut/Bombala, Grafton/Walcha as needed. 3+1+1 Year term Aerial Services Presentation► 4

TIMETABLE Aerial Services Presentation► 5

MANDATORY REQUIREMENTS • Safety Management System • • Management of safety to legal and industry standards Expectation of a sound Safety Management System • Financial • Demonstrate Solvency and a financial capacity to undertake the work. • Operational • • Proposed resourcing to undertake the task Show adequate experience. • Equipment and Requirements • Ensure you have the equipment to meet the requirements in the RFP Aerial Services Presentation► 6

IMPORTANT POINTS • Lodgement of documents • https: //www. tenders. nsw. gov. au • Confidentiality • Proposal Amendments, Clarifications and Addenda • Will be posted on the e. Tender website • All registered proponents will receive an email notifying them of the presence of an amendment on the website. • Unauthorised Communication • Improper Assistance • Anti-Competitive Conduct • Proponent Warranties Aerial Services Presentation► 7

FIRE PARCEL S 2 • • be • • • o o o • • FY 2022 -FY 2024 +1+1 year extensions. Based near Tumut One helicopter available from approximately 1 November till 31 March There is a shoulder period from the 1 August till 20 th December when 1 weeks’ notice will given for Standby duties to begin. 1 st August till 1 st November shoulder will be for the Grafton Region as needed. Once Standby duties begin, standby duties may continue through till 31 March. The ability to carry at least a 600 L bucket but preferably a 800 L bucket. The ability to support fire operations in Bombala, Bathurst, Grafton or Walcha Management areas as required. Proponents are asked to price works for the following duties: Standby (ready to fly in under 60 minutes, recommended per day rate) 100 days Standup (ready to fly in 15 minutes, recommended per day rate) 50 days Active flight (recommended per hour rate) 100 hours Please specify under what circumstances each charge will apply. FCNSW are open to original proposals for pricing. Aerial Services Presentation► 8

FIRE PARCEL B 2 • • be • • • o o o • • FY 2022 -FY 2024 +1+1 year extensions. Based near Bathurst One helicopter available from approximately 1 November till 31 March There is a shoulder period from the 1 August till 20 th December when 1 weeks’ notice will given for Standby duties to begin. 1 st August till 1 st November shoulder will be for the Grafton Region as needed. Once Standby duties begin, standby duties may continue through till 31 March. The ability to carry at least a 600 L bucket The ability to support fire operations in Bombala, Bathurst, Grafton or Walcha Management areas as required. Proponents are asked to price works for the following duties: Standby (ready to fly in under 60 minutes, recommended per day rate) 100 days Standup (ready to fly in 15 minutes, recommended per day rate) 50 days Active flight (recommended per hour rate) 100 hours Please specify under what circumstances each charge will apply. FCNSW are open to original proposals for pricing. Aerial Services Presentation► 9

FIRE PARCELS Aerial Services Presentation► 10

FIRE FIGHTING MANDATORY ELIGIBILITY CRITERIA • • Registered on ARENA and approved by RFS for aerial firefighting by the “call when needed” panel. Insurances as per the model contract: o Aviation Hull and Liability Insurance – including passenger liability insurance. The insurance policy must note the interest of FCNSW in relation to the provision of Services. o Airport Owners & Operators Liability Insurance (can be called Hangar Keepers Insurance)FCNSW requires a $20 -million-dollar value on this policy. o Workers Compensation Insurances to the extent required by the law of the State of New South Wales, Aerial Services Presentation► 11

ADDITIONAL FEATURES • • • • • Solutions to fire shoulder periods Additional Aircraft availability Drop control system 800+ litre bucket available during mid-summer for Tumut. retardant/gel agitation system (Monsoon not acceptable). GPS capable of producing MGA’s and Lat Longs. Intercom system to communicate with FCNSW ‘Push to Talk’ for observer to communicate on all radios. GPS tracking system. (to enable both FCNSW and the RFS State Air-desk to track aircraft movement using “Tracplus” system) UHF radio with Citizen Band frequencies Incendiary Machine incendiary Balls Fully trained Bombardier Aerial Drip Torch Services Drip Torch Fluids & Gels mapping/GPS Specialist Cameras and detection equipment Aerial Services Presentation► 12

AERIAL PESTICIDE APPLICATION SERVICES 1. Charges not including fuel such as Standup and Standby will be adjusted at the beginning of each financial Year. The first adjustment being on the 1 st July 2022. It will be adjusted by the movement in the Consumer price Index (Australian Bureau of Statistics 6401. 0 quarterly release for eight capital cities, All Groups CPI) over the preceding 12 months Aerial Services Presentation► 13

PESTICIDE WORK PARCELS d S 1 • • • B 1 • • • N 1 • • • FY 2022 -FY 2024 +1 +1 year extensions Helicopters suitable to achieve the works program as tabled below in the allocated months. Available for other minor duties as required Fuel, water and chemical truck per helicopter needs to be supplied preferably with a landing pad. Bunded herbicide transport and mixing area FY 2022 -FY 2024 +1 +1 year extensions Helicopters suitable to achieve the works program as tabled below in the allocated months. Available for other minor duties as required Fuel, water and chemical truck per helicopter needs to be supplied preferably with a landing pad. Bulk water haulage sufficient to do a day’s spraying needs to be quoted on separately. Bunded herbicide transport and mixing area. Aerial Services Presentation► 14

Table in RFP document and Model contract MANDATORY ELIGIBILITY CRITERIA and mixing area. Aerial Services Presentation► 15

GENERAL CONDITIONS • • Liquid application 100 L, 60 L (5 L/ha as well for Northern) Landing pads supplied by the service vehicles an advantage but not essential. Chemical mostly picked up by contractor from retail store or FCNSW sheds. Undercover and bunded transport of liquid and dry chemicals to the application sites and empties going back the same way to be priced. • A GPS system capable of accepting shape files to guide the spraying work. and mixing area. • The ability to carry 6 -8 x metal A-Frame ‘No Entry-Road Closed’ signs to shut off operational areas during application and to supply and carry 4 x metal A-Frame ‘No Entry-Helicopter Landing Zone’ signs to protect the landing/mixing area. • Provide a qualified person to occasionally operate a forklift for the loading of liquid and dry products and the unloading of used containers and packaging. • Water for liquid application will be available close to the treatment areas for the support vehicle to refill from. • Water must only be sourced from water sources approved by FCNSW. • The maximum allowable coefficient of variation for spread is 15% for granules and 30% for liquids. • Staff must be sufficient to provide continuous service to achieve the task. They need to be contactable at all times • Weather data to be captured and recorded • Prior to commencement and if requested by FCNSW, the successful operator will; • Preferably four-wheel drive support truck. • Suggest a system that confirms chemical ingredients used per batch mixed. o Allow an audit, on site of aircraft maintenance records, aircraft flight reports, flight and duty records, pilot's logbooks and pilot files; and o Provide results of the last two CASA audits of their Air Operators Certificate; and o Provide details of the maintenance organisation primarily responsible for the proposed maintenance of the aircraft. Aerial Services Presentation► 16

Proposal form 3 -Safety and Environment ATTENTION and mixing area. Improvement Notices also include Off Target Spraying and Environmental damage from previous customers and the EPA. Aerial Services Presentation► 17

ADDENDUM 1 PRICING OF THE PROPOSAL • • Submit pricing in Australian Dollars including GST. Submit each helicopters’ hourly fuel usage in Form 5 of the RFP. Submitted pricing is applicable until 1 July 2022. The rates will be reviewed as per the rate review mechanism. FCNSW recognizes that Contractors’ costs may change over time. The rate review mechanism is in place so contractors can price for the first year, knowing that their rates will be adjusted according to the mechanism each year. The mechanism is subject to change through contract negotiations with successful proponent. • Definitions ‘Year’ means a period of 12 months commencing 1 July till 30 June each year. Aerial Services Presentation► 18

ADDENDUM 1 RATE REVIEW MECHANISM 1. Charges not including fuel such as Standup and Standby will be adjusted at the beginning of each financial Year. The first adjustment being on the 1 st July 2022. It will be adjusted by the movement in the Consumer price Index (Australian Bureau of Statistics 6401. 0 quarterly release for eight capital cities, All Groups CPI) over the preceding 12 months 2. Charges including fuel (Operating Rates (OR)) such as active fire fighting, ferrying and spot spraying per hour will be adjusted on a quarterly basis if the Reference Fuel Price (RF) varies by more than 5% against the Benchmark Fuel Price (BF) using the formulae below, RF = Reference fuel price is the average price per litre for aviation fuel at Parkes (Aero Refuelers) for the previous quarter (3 month period ending March, June, September, December) over which any rate adjustment is to be applied where FC = hourly fuel consumption for that aircraft; The Benchmark Fuel Price (BF) to be used is the average pump price of aviation fuel in Parkes for the 2019 financial year, which = $1. 75 per litre (ex GST) where the RF > BF: New OR $/hour = (((RF - BF) - (0. 05 x BF)) x FC) + Old OR, and where the BF > RF: New OR $/hour = (((BF - RF) - (0. 05 x BF)) x FC) + Old OR. 3. Rates per hectare of herbicide application will be adjusted based on: AC = Area Covered for each helicopter in ha/hour OR per ha = Price in $/ha New OR per hectare=((((RF-BF) - (0. 05 x BF)) x FC)+( old OR per ha x AC))/AC New OR per hectare=((((BF-RF) - (0. 05 x BF)) x FC)+(old OR per ha x AC))/AC Aerial Services Presentation► 19

ASSESSMENT CRITERIA • • • Criterion 1: Price, Non-Price Criterion 2: Equipment Criterion 3: Referees Criterion 4: Experience Criterion 5: Safety Weighting: Weighting: 60% 40% 10% 10% Aerial Services Presentation► 20

THANKYOU Thankyou for your interest in the Aerial Services contracts and we look forward to your proposals. Please don’t hesitate to contact us for additional information if required. Please allow extra time for responses between the 19 th December and the 3 rd January. I will respond to emails and phone messages over this time within a few days. Lyndon Orpwood Aerial Services Presentation► 21